At least seven women were among the dead at the plantation in the northeastern state of Assam, 310 km from the state capital, Guwahati.
"So far 41 people have died after consuming spurious liquor," Assam Power Minister Tapan Gogoi told Reuters by telephone.
Another 45 people have been hospitalised and 20 are in a critical state after nearly 100 people drank the liquor on Thursday, local lawmakers from the ruling Bharatiya Janata Party told Reuters.
Dilip Rajbnonshi, a doctor at the government hospital in Golaghat, said the deaths were due to "spurious country liquor".
Deaths from illegally produced alcohol, known locally as hooch or country liquor, are common in India, where many cannot afford branded spirits.
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